TSX Venture Exchange
Shares Outstanding: 174,519,527
TORONTO, Dec. 8 /CNW/ - NWM Mining Corporation ("NWM" or the "Company") (TSX-V: NWM) is pleased to announce that it has agreed with Tara Gold Resources Corp. ("Tara") to purchase Tara's 20% Net Cash Flow interest ("NCF") in NWM's Lluvia de Oro mining property. By eliminating the NCF, NWM is better positioned to begin full scale commercial production and to undertake comprehensive property-wide and value accretive exploration initiatives. NWM and technology partners have invested a total of CAD$ 22.5 million into the Lluvia de Oro and La Jojoba combined projects and the Company expects to begin commercial gold and copper production in 2010.
The purchase price for the NCF paid by NWM to Tara is USD $396,875 (subject to an adjustment) to be allocated as follows: USD $200,000 in cash and USD $196,875 to be satisfied by issuing 2,500,000 common shares of NWM to Tara on January 2, 2010. The payment by NWM to Tara shall be subject to a future performance-based price adjustment calculated as follows: upon NWM producing and selling 3,750 ounces of gold over a 3 month period, NWM shall pay to Tara a further USD $196,875 to be satisfied by the issue of 2,500,000 common shares of NWM.
NWM has combined two distinct gold deposits which can be served simultaneously by a central processing facility. The two deposits are the past-producing Lluvia de Oro gold mine and the nearby La Jojoba gold resource. At a cut-off grade of 0.3 g/t gold, the combined properties currently host 315,210 ounces of Measured and Indicated gold resources and 253,373 ounces of Inferred gold resources. In addition, NWM holds exploration rights to 5,074 contiguous hectares of ground surrounding and along trend of the deposits. A further news release outlining exploration potential is expected soon. The Company's other properties include the Sierra Pinta high-grade past-producing underground gold mine located approximately 25 km northwest of La Herradura, Mexico's largest producing gold mine and the PII Colorado exploration project located 6 km southwest of the historic Llano Colorado gold camp.
Mr. Chris Berlet, President and CEO of NWM Mining Corporation, stated, "This transaction is good for both Tara and NWM shareholders as it moves the project towards commercial production, consolidates NWM as the Lluvia de Oro and La Jojoba property owner, explorer and developer and provides Tara Gold Resources, as an NWM shareholder, with an interest in NWM's district level gold development projects and the Company's other properties in Sonora State, North West Mexico."
NWM (known at the time as Columbia Metals Corporation) signed an option agreement with Tara, dated September 12, 2006, whereby NWM acquired 100% interest, subject to Tara's ongoing NCF, in the four mining concessions containing the Lluvia de Oro deposit by making payments totalling USD$ 4,337,500, and issuing 1,000,000 NWM shares to Tara Gold.
Mr. Rodney A. Blakestad, C.P.G., is the Qualified Person in compliance with National Instrument 43-101 of the Canadian Securities Administrators for this press release and has reviewed and approved the technical and scientific disclosure contained herein.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release includes "forward-looking information"; as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Mexico, if any; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties, including those described in the Company's other regulatory filings filed with the Canadian Securities Administrators and available at www.sedar.com. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy of this release.
SOURCE NWM Mining Corporation
For further information: For further information: NWM Mining Corporation at (416) 364-6799